Union Coal and Mines Minister G. Kishan Reddy has highlighted coal gasification as a key solution for reducing India’s dependence on imported industrial inputs and enhancing long-term energy security. Speaking at a coal gasification roadshow in Mumbai, he emphasized that the technology can help the country significantly lower its annual import expenditure on products such as natural gas, ammonia, methanol, and urea.
According to the minister, India currently spends nearly Rs 3 lakh crore every year on importing these critical resources. By converting domestic coal into valuable industrial feedstocks, the country can reduce import dependence while strengthening self-reliance.
Coal Gasification to Support Industrial Growth
Reddy stressed that coal gasification will play a vital role in driving industrial growth and advancing the vision of an Atmanirbhar Bharat. The National Coal Gasification Mission aims to convert 100 million tonnes of coal into syngas by 2030, creating new opportunities across sectors such as chemicals, fertilizers, and energy.
Furthermore, the initiative is expected to improve the utilization of India’s abundant coal reserves while supporting the development of downstream industries.
Rs 46,000-Crore Incentive Scheme to Accelerate Investments
To encourage large-scale adoption, the government has introduced a two-phase incentive programme worth Rs 46,000 crore. The first phase carries an allocation of Rs 8,500 crore, while the second phase includes Rs 37,500 crore.
As per Tribune India, the incentive scheme is designed to attract substantial investments and accelerate the implementation of coal gasification projects across the country. The government believes that strong industry participation will be essential for achieving the mission’s objectives.
Industry Participation Key to Mission Success
Reddy called on industry leaders and investors to actively engage with the programme. He noted that the government is seeking stakeholder feedback on the draft Request for Proposal (RFP) to ensure effective implementation.
“The success of this mission ultimately depends on the active participation of industry and investors,” he said, adding that businesses will play a central role in expanding the coal gasification ecosystem.
Maharashtra Positions Itself as an Investment Hub
During the event, Maharashtra Chief Minister Devendra Fadnavis reaffirmed the state’s commitment to supporting coal gasification projects. He stated that Maharashtra is actively positioning itself as a preferred destination for investments in the sector.
Fadnavis highlighted the potential of carbon capture technologies to make coal-based industries more sustainable. He also pointed to Vidarbha’s coal resources, available land, and infrastructure as major advantages for developing integrated industrial clusters.
Strengthening India’s Energy Future
Overall, the government’s coal gasification strategy seeks to reduce import dependence, improve energy security, and create a stronger domestic industrial base. Through policy support, financial incentives, and industry collaboration, India aims to unlock the full potential of coal gasification and move closer to achieving long-term energy self-sufficiency.
